NYC Demands Residency Proof as Pied-a-Terre Tax Targets Luxury Homes
New York City’s Mamdani administration released a list of more than 900,000 properties potentially subject to a new pied-a-terre surcharge on luxury second homes, prompting 17,000 owners to receive letters demanding proof of primary residence within four weeks to avoid thousands in extra taxes; tax rates range from 0.8% to 1.3% for residential properties and 4% to 6.5% for co-ops and condos valued over thresholds, to help close a $6 billion budget gap with an expected $500 million from the surcharge. Critics say the vetting was rushed and difficult, and deadlines are August 21 for residential properties and August 24 for co-ops; exemptions exist and the city says owners should appeal if they believe they qualify.